No. 3 on my short list of things that cause startups to fail is not having enough capital. I don’t mean “not having enough capital” in the way you might expect, at least not in the way that I do when I write about the dearth of seed-stage capital. With only about 2 percent of all VC funds going to seed-stage deals in the first place, and most of that in Silicon Valley and to a handful of other areas across the country, there is simply not enough seed capital in play.
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Sir Isaac Newton’s second law of motion can be used by entrepreneurs to map out a “lean” startup strategy for their new ventures.
